Dividend-paying companies such as Exchange Income and Granite Real Estate Investment Trust can diversify your portfolio cash flow by paying constant and large dividends. These stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. Today I will share with you my best paying dividend shares you should be considering for your portfolio.
Exchange Income Corporation (TSX:EIF)
Exchange Income Corporation engages in aerospace and aviation services and equipment, and manufacturing businesses worldwide. The company provides employment to 3265 people and with the company’s market cap sitting at CAD CA$978.99M, it falls under the small-cap stocks category.
EIF has a juicy dividend yield of 7.22% and is paying out 90.10% of profits as dividends . The company’s dividends per share have risen from CA$1.50 to CA$2.19 over the last 10 years. The company has been a reliable payer too, not missing a payment during this time. More detail on Exchange Income here.
Granite Real Estate Investment Trust (TSX:GRT.UN)
Granite is a Canadian-based REIT engaged in the ownership and management of predominantly industrial, warehouse and logistics properties in North America and Europe. Founded in 1998, and currently headed by CEO Michael Forsayeth, the company now has 48 employees and with the company’s market capitalisation at CAD CA$2.32B, we can put it in the mid-cap category.
GRT.UN has a sumptuous dividend yield of 5.39% and the company currently pays out 34.27% of its profits as dividends , with analysts expecting this ratio in three years to be 75.19%. Despite there being some hiccups, dividends per share have increased during the past 10 years. Granite Real Estate Investment Trust also reported a strong double digit earnings growth of 28.05% over the past 12 months. More on Granite Real Estate Investment Trust here.
RioCan Real Estate Investment Trust (TSX:REI.UN)
RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $13.9 billion at December 31, 2017. The company size now stands at 650 people and has a market cap of CAD CA$7.41B, putting it in the mid-cap stocks category.
REI.UN has a large dividend yield of 6.17% and pays 65.38% of its earnings as dividends , with analysts expecting this ratio in three years to be 85.41%. REI.UN’s dividends have seen an increase over the past 10 years, with payments increasing from CA$1.35 to CA$1.44 in that time. The company has been a reliable payer too, not missing a payment during this time. Dig deeper into RioCan Real Estate Investment Trust here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.